LMAX Trader Launched to "Transform Retail FX Trading"

First there was Betfair. Then came Tradefair. Today there is LMAX Trader, which has just been launched amid a flurry of publicity, it's mission "to transform retail contracts for difference (CFD) and FX trading". In the press release LMAX chief executive Robin Osmond is quoted as saying:

The current broker-led model for online trading of CFDs and FX is outdated and doesn't work to directly benefit the customer as the interests of parties are not aligned. We are bringing transparency and fairness to the market by providing an exchange platform and a business model that clearly wants its retail traders to be as successful as possible. For the first time, retail CFD and FX traders can access an open order book with wholesale institutional liquidity across a wide variety of asset classes with all the protections you would expect. LMAX offers traders the ability to make a market rather than be passive takers of broker prices.

The press release goes on to inform us that:

LMAX is the first Multilateral Trading Facility (MTF) where retail customers can trade CFDs and the first to offer central clearing. The MTF model and centralised clearing provides the transparency and security that the retail market has lacked and which clients, regulators and the market are increasingly demanding.

Unsurprisingly in this day and age, LMAX Trader comes complete with a "community" and other "social" features, including the ability to "share your trades with other members".

A previous press release revealed that whilst Betfair are the majority shareholder, Goldman Sachs had taken a 12.5% stake in London Multi-Asset Exchange (Holdings) Limited. Personally I'm not entirely sure that Goldman Sachs are the epitome of "transparency and fairness", but I guess I'm just an old cynic!

There is just one other small problem if you do like the sound of the "transparency and security that the retail market has lacked" and you're from the United States. The LMAX Trader account application page will inform you that:

Please note we are unable to accept applications from US residents.